Charles Schwab Investment Management (CSIM), an asset management arm of
The Charles Schwab Corporation, announced today there will be no capital
gains distributions for the 2017 tax year by any of the 22
exchange-traded funds (ETFs) in the Schwab ETF family. CSIM has paid
zero capital gains on its ETFs for eight consecutive years, and is the
only top ten ETF provider to not yet pay a capital gain on any of its
ETFs.1
“Schwab ETFs have attracted more than $90 billion in assets and is one
of the fastest-growing ETF families in the industry,” said Jonathan de
St. Paer, senior vice president, strategy and product for CSIM.2
“CSIM seeks to provide ETFs that have the key attributes investors are
looking for, including low-costs, tight tracking error and potential tax
efficiency, and we’re proud of the fact that we haven’t had to
distribute any capital gains on any of our ETFs for eight straight
years.”
Schwab ETFs include both market-cap index ETFs and Fundamental Index®
ETFs. Schwab’s market-cap index ETFs have among the lowest operating
expense ratios in the industry, and the Schwab Fundamental Index3
ETFs continue to gain traction from institutional and individual
investors alike. CSIM views these strategies as complementary, and
believes that an allocation to both may improve a portfolio’s
risk-return characteristics and provide diversification benefits.
For more than 25 years, CSIM has provided investors with a diverse
selection of foundational products that aim to deliver consistent
performance at a competitive cost. As the fifth largest ETF provider
with more than $90 billion in ETF assets under management, CSIM
continues to serve as an industry leader for ETF investors.4
About Charles Schwab Investment Management, Inc.
Founded in 1989, Charles Schwab Investment Management, Inc., a
subsidiary of The Charles Schwab Corporation, is one of the nation’s
largest asset management companies, with more than $340 billion in
assets under management as of 10/31/17. It is also the third largest
provider of index mutual funds and the fifth largest provider of ETFs.5
More information is available at schwabfunds.com.
About Charles Schwab
At Schwab, we believe in the power of investing to help individuals
create a better tomorrow. We have a history of challenging the status
quo in our industry, innovating in ways that benefit investors and the
advisors and employers who serve them, and championing our clients’
goals with passion and integrity.
More information is available at www.aboutschwab.com.
Follow us on Twitter,
Facebook,
YouTube
and LinkedIn.
1 Per data available on each ETF issuer’s public website as
of December 13, 2017.
2 Employee of Charles Schwab &
Co., Inc.
3 Schwab is a registered trademark of Charles
Schwab & Co., Inc. Fundamental Index is a registered trademark of
Research Affiliates LLC.
4 Source: Strategic Insight, as
of 10/31/17; based on assets under management.
5 Source:
Strategic Insight, as of 10/31/17; based on assets under management.
Disclosures
Investors should consider carefully information contained in the
prospectus, or if available, the summary prospectus, including
investment objectives, risks, charges and expenses. You can obtain a
prospectus by visiting
www.schwabfunds.com
or calling 1-877-824-5615. Please read the prospectus carefully before
investing.
All regulated investment companies are obliged to distribute portfolio
gains to shareholders at year end. There is no guarantee that capital
gains distributions will not be made in the future. Trading shares of
the Funds will also generate tax consequences and transaction expenses.
This material is not intended to be tax advice. The tax consequences
vary by individual taxpayer. Please consult your tax professional or
financial adviser for more information with regard to your specific
situation.
Investment returns will fluctuate and are subject to market volatility,
so that an investor's shares, when redeemed or sold, may be worth more
or less than their original cost. Shares of ETFs are bought and sold at
market price, which may be higher or lower than the net asset value
(NAV).
Charles Schwab Investment Management, Inc. (CSIM), is the investment
advisor for Schwab ETFs. Schwab ETFs are distributed by SEI Investments
Distribution Co. (SIDCO). SIDCO is not affiliated with CSIM.
©2017 Charles Schwab Investment Management, Inc. All rights reserved.
(1217-79SW)
